Lenders Mortgage Insurance

Lenders Mortgage Insurance (LMI) is one of the most popular ways to achieve the dream of home ownership sooner, if you do not have a large deposit. Over 2 million Australians have used Lenders Mortgage Insurance to help enter the property market.

We require you to take out Lenders Mortgage Insurance if we lend you more than 80% of the value of the property for standard loans, or 60% of the value of the property for Low Doc loans. This is largely to protect us against the risk associated with providing you with the loan in the event that you default.

Essentially Lender’s Mortgage Insurance gives you the opportunity to purchase a property with a smaller deposit. It is an additional home buying cost, however as we add this charge to your loan amount, it doesn’t cost you anything upfront.

For example, if you want to buy a house that is valued at $500,000 and you have a deposit of $60,000. Normally, we would only lend you up to $400,000 ($500,000 x 80%) and you would need a deposit of $100,000. However if your income could support the loan, and you took advantage of Lenders Mortgage Insurance, we could then lend you the $440,000 you need to buy the house.

Buy now or wait and save?

To help decide whether you should buy now using Lenders Mortgage Insurance or wait and save your deposit, try this useful tool from Genworth Financial, our Lenders Mortgage Insurance provider.

Contact our Home Loan experts to see how Lenders Mortgage Insurance can benefit you.

 

• Important Information:
  Applications for finance are subject to the Bank’s normal credit approval. Full terms and conditions are included in the Loan Offer. Fees and charges are payable.